9911796707
TMI Blog2011 (6) TMI 659X X X X Extracts X X X X X X X X Extracts X X X X ..... of partial duty exemption under Notification No. 5/2007-C.E., dated 1-3-2007. The appellants sell their products directly to stockists and dealers from the factory and also through the depots located at Delhi, Roorkee and Rudrapur to their stockists and dealers and also through consignment agents located in different states. The depots and consignment agents get the goods from the appellant's factory on stock transfer basis. In all the cases, the goods are cleared from the factory on payment of duty. The appellants in respect of the sales to dealers/stockists give two types of discounts - (a) Cash Discount/Prompt Payment Discount :- Cash discount is given when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransaction value. The show cause notices also alleged that while calculating the duty during the period of dispute, the appellant should have gone in for provisional assessment which they have not done. The show cause notices accordingly sought recovery of the above mentioned duties from the appellant along with interests and also sought imposition of penalty under Rule 25 of the Central Excise Rules, 2002 for contravention of the provisions of Rule 4 & 6 read with Section 4 of the Central Excise Act 1.2 These show cause notices were adjudicated by the Addl. Commissioner vide orders-in-original No. 26/ADC/LKO, dated 30-9-2009 and Order-in-Original No. 27/ADC/LKO, dated 30-9-2009 by which the duty demands as raised in the show cause no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the end of the month on the basis of total quantity lifted during the month, that in this situation; it is not possible to determine the amount of discount to be deducted from the assessable value before hand, that in view of this, the appellant had written to the Assistant Commissioner that they may be allowed to go in for provisional assessment, that in response to this letter of the appellant, the department vide letter dated 15-3-2007 informed them that the provisional assessment is not required, that in view of this, the allegation in the show cause notices that the appellant should have gone in for provisional assessment is without any basis, that just because the quantum of quantity discount has not been mentioned the invoices issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y for the same. The appellant as per their Quantity Discount Policy, had fixed the rates of quantity discounts based on the quantity purchased by a customer during a month and accordingly, the quantum of Quantity Discount available to a customer was being determined at the end of the month and at that stage, the discount was being passed on by issuing a credit notes to the customers and to that extent, the amount was being deducted from the total assessable value. Just because the quantity discount was not being mentioned in the individual invoices during the month, the same could not be denied. We are, therefore, of the prima facie view that there is no short payment of duty by the appellant and as such, there is merit in the appellants' p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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